Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Capitec Bank Holdings's Sloan Ratio for the quarter that ended in Feb. 2024 was 3.82%.
As of Feb. 2024, Capitec Bank Holdings has a Sloan Ratio of 3.82%, indicating the company is in the safe zone and there is no funny business with accruals.
Capitec Bank Holdings Sloan Ratio % Historical Data
The historical data trend for Capitec Bank Holdings's Sloan Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Capitec Bank Holdings's Sloan Ratio %
For the Banks - Regional subindustry, Capitec Bank Holdings's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Capitec Bank Holdings's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Capitec Bank Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Capitec Bank Holdings's Sloan Ratio % falls into.
Capitec Bank Holdings Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Capitec Bank Holdings's Sloan Ratio for the fiscal year that ended in Feb. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Capitec Bank Holdings's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was 250.13 (Aug. 2023 ) + 308.724 (Feb. 2024 ) = $559 Mil.
Capitec Bank Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 514.216 (Aug. 2023 ) + 243.598 (Feb. 2024 ) = $758 Mil.
Capitec Bank Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was -611.957 (Aug. 2023 ) + -4.272 (Feb. 2024 ) = $-616 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Capitec Bank Holdings (OTCPK:CKHGY) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Feb. 2024, Capitec Bank Holdings has a Sloan Ratio of 3.82%, indicating the company is in the safe zone and there is no funny business with accruals.
Capitec Bank Holdings Sloan Ratio % Related Terms
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Capitec Bank Holdings (Capitec Bank Holdings) Business Description
Capitec Bank Holdings Ltd is a retail bank with more than 850 branches in South Africa. Its services focus on three customer needs: saving, which provides customers the ability to receive and store funds; credit, which satisfies customer needs to access and borrow funds; and transacting, which allows for payments and movement of funds. It operates in three segments: -Retail bank, Business bank, and the Insurance business. Net interest income accounts for more than two-thirds of total company revenue. The company also generates revenue from fees on loans and transactions. Roughly a third of the company's loans are mortgages, and another third are other secured loans. Credit facilities and unsecured credit loans make up most of the remaining loans outstanding.
Capitec Bank Holdings (Capitec Bank Holdings) Headlines
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